Government to inject up to $1.4 bn capital in State Bank of India by next week

Government of India has decided to inject Rs. 60 billion to Rs 70 billion ($1.19-$1.39 billion) in State Bank Of India (SBI) by next week. Banking secretary D.K. Mittal said it on Friday.

The government of India is the largest shareholder of SBI. Earlier this year, the bank had said it will receive about 79 billion rupees from the government through a preferential allotment of shares.

In October 2011,financial ratings agency Moody downgraded SBI’s standalone rating, citing inadequate capital and declining asset quality, putting pressure on the government to inject money into the bank.